Baltimore Business Journal: Maryland to receive $4.5 million from Uber over 2016 data breach

Baltimore Business Journal: Maryland to receive $4.5 million from Uber over 2016 data breach

Maryland will receive about $4.5 million from Uber Technologies Inc. as part of the ride-sharing company’s nationwide settlement related to its attempt to cover up a data breach.

San Francisco-based Uber agreed to pay $148 million overall to all 50 states and Washington, D.C. — the largest multi-state data breach settlement ever. In addition, Uber has agreed to strengthen its corporate governance and data security practices.

Uber learned in November 2016 that hackers had gained access to information about approximately 600,000 drivers. Uber did not report the breach for a year. Instead, the states allege Uber negotiated a deal to pay the hackers to delete the information and not disclose the breach happened.

Maryland Attorney General Brian E. Frosh said the state’s portion of the settlement will be used to provide $100 payments to each Maryland Uber driver whose driver’s license number was accessed.

“When personal information gets into the wrong hands because of a data breach, the chances of becoming a victim of identity greatly increase,” Frosh said. “A one year delay in reporting a data breach makes the danger even greater for the victims.”

Maryland Attorney General (“AG”) Brian Frosh is not going down without a fight in his bid to defend a Maryland law prohibiting “price gouging” by generic pharmaceutical manufacturers. H.B. 631, 437th Gen. Assemb., [...]